Telstra reconnects

Published in The Hearld Sun January 2007

Analysts are tipping Telstra could be on the comeback trail following last year’s $15.5 billion T3 sale.

Yesterday when the broader market slumped more than one per cent, Telstra shares held firm for most of the day.

The ordinary shares and instalment receipts both finished only 1 cent lower at $4.09 and $2.66, respectively. The instalment receipts are now trading 33 per cent above their $2 issue price.

“Overall, we think the dark days are behind Telstra,” says Fat Prophets senior analyst Greg Canavan.

Macquarie Equities client adviser David Halliday agrees and predicts the stock will hold its gains over the next 12 months.

But Wealth Within chief analyst Dale Gillham is less optimistic and says people who invested in the disastrous T2 float also trumpeted early profits.